NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Sunday, May 22, 2005

Credit Suisse, one of the world’s biggest banks for wealthy clients, on Tuesday said the business of microfinance — providing loans as small as $50 to the poor — will soon attract mainstream investors.
The Swiss-based bank, which operates an investment fund that finances microcredit projects, said the microfinance market was growing 20-40 percent annually, thanks in part to its record of contributing to economic development in poorer nations.
“Microfinance is a high-growth industry, fueled not only by the size of its target market but also by its sustainable returns,” the bank said in a statement.
The field of microfinance refers to specialised agencies in poor countries that provide loans, savings, insurance and other financial products to low-income clients.
Loans can be truly small, say, $100 for a cow, or $35 for a sewing machine. Over the past two decades, microfinance has become a pillar among development agencies and won the praise of the World Bank. The United Nations has named 2005 as the International Year of Microcredit.
Story found here.